Heli-Skiing Canada Just Got Cheaper!

Bottom Line: Heliskiing Canada will cost non-Canadians 3.5% less next year, and Canadians will pay 7% less

Alphabet Soup: GST, HST, PST

Canada has a value-added tax on most things under a national General Sales Tax (GST). Introduced at 7% in 1991, it has been reduced to 6% in 2006 and again to 5% in 2008.

GST National Goods and Services Tax

1991 Goods and Services Tax (GST) of 7% goes into effect as a consumption tax.

2006 GST reduced to 6%

2008 GST reduced to 5% (good trend, eh?)

2009 Effective Heli-Skiing Tax Rate

Canadians 5%

Non-Canadians 2.5%

Non-Canadians get a break, as the only half of these taxes apply to tourists.

PST Provincial Sales Tax

BC adopted a Provincial Sales Tax (PST) in 1948. Since inception, heliskiing in Canada was exempt from PST , along with lift tickets and transportation. It has remained around 7% since heliskiing began.

1948 3%

1954 5%

1976 7%

1978 5%

1979 4%

1981 6%

1987 6%

1993 7%

20o2 7.5%

2004 7%

HST Harmonized Sales Tax

In 2010, BC switched from the PST to a HST, the Hamonized Sales Tax ( a great oxymoron, eh) to be more compatible with other provinces. Heliskiing was not exempt from PST *, so the tax rate on BC heliskiing increased by the amount of the HST, 7%.

2011 Canadian Effective Heli-Skiing Tax = 12%

2011 Non-Canadian Effective Heli-Skiing Tax = 6%

Return to PST

In August of 2011 a referendum by mail eliminated the HST (54% in favor). It will be replaced by the previous PST, at roughly the same rate. And, travel services are exempt. Voila, once again heliskiing rates will decrease by the amount of the PST.

2014 Canadian Effective Heli-Skiing Tax = 5%

2014 Non-Canadian Effective Heli-Skiing Tax = 2.5%

So again, make sure the bulk of your payments for 2014 heliskiing occur after April 30, and/or ask your operator for the tax break.